WLFI governance tokens have transitioned from non-transferable status to fully tradable assets, potentially boosting user engagement and funding opportunities for the project.
Despite reduced holdings from previous levels, the Trump family retains a dominant 40% stake in WLFI tokens, exerting substantial influence over governance decisions. Major investors including Justin Sun and Aqua 1 Foundation also control significant portions of the token supply.
Market observers warn this concentration risks creating plutocratic governance systems where voting power disproportionately favors large holders, contravening blockchain decentralization principles. Concerns have been raised about potential sidelining of broader community interests in project decisions.
Proposed mitigation strategies include implementing anti-sybil measures and individual holding caps to promote equitable participation. The situation highlights persistent tensions between capital accumulation and decentralized governance ideals within the Web3 ecosystem.